Nottingham, United Kingdom (PressExposure) May 17, 2008 -- The Berlin property market has become one of the most depressed in Europe, high unemployment, shrinking population and economic growth have cause continual erosion of prices. NuWire Investor recommends Berlin for property investment however, on the grounds that there is good money to be made from residential rentals, with only 45% of the population owning their own homes, (15% in Berlin).
NuWire said that the trend towards renting instead of buying makes it hard to make money from re-selling your investment property, as you are likely to be selling to other investors, but if the market and the population turns toward buying their homes, then Berlin property owners could start to make some serious gains.
Liam Bailey Head of international research for David Stanley Redfern Ltd gave us his thoughts on the potential for such a change in Berlin property: "Rental rates in Berlin have been rising in almost all districts for the past year, as rental becomes more expensive, and closer to monthly mortgage rates, then people will realise it is more cost effective to buy their property. When that happens property prices in Berlin will start to be driven up. On top of rising rents, the government has just approved a subsidy program, allowing people to use their government subsidised pensions to buy property. When the bill is passed, it will provide another potential trigger to create a seller's market in Berlin."
David Stanley Redfern Ltd, recently opened a Berlin office as part of their Western European Division, and their German sourcers, are currently focussing on Berlin, building on what is already an impressive Berlin range, and ensuring DSR are on board with the best developments and units coming onto the Berlin market.
The plan is to expand from Berlin into other hot markets in Germany. And the full German property range will be on davidstanleyredfern.de
Find out more about German property.